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Marine transportation to provide waterborne transportation of petroleum products and crude oil throughout North America; and

Accounts receivable

138,291

Inventories

31,944

Other current assets

13,947

Fixed assets

617,878

Mineral leaseholds

623,137

Accounts payable

(51,534

)

Other current liabilities

(29,870

)

Other long-term liabilities

(18,793

)

Total Purchase Price

$

1,325,000

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

Pro forma consolidated financial operating results:

Revenues

$

615,275

$

653,749

$

1,829,389

$

1,872,939

Net Income Attributable to Genesis Energy, L.P.

10,978

31,400

59,314

78,113

Net Income Available to Common Unitholders

(5,276

)

15,943

10,939

31,853

Basic and diluted earnings per common unit:

As reported net income per common unit

$

0.01

$

0.28

$

0.51

$

0.81

Pro forma net income per common unit

$

(0.04

)

$

0.14

$

0.09

$

0.28

September 30, 2017

December 31, 2016

Petroleum products

$

2,618

$

11,550

Crude oil

46,035

73,133

Caustic soda

5,381

4,593

NaHS

11,176

9,304

Raw materials - Alkali Operations

4,560

—

Work-in-process - Alkali Operations

4,751

—

Finished goods, net - Alkali Operations

14,197

—

Materials and supplies, net - Alkali Operations

9,840

—

Other

—

7

Total

$

98,558

$

98,587

September 30, 2017

December 31, 2016

Crude oil pipelines and natural gas pipelines and related assets

$

3,004,618

$

2,901,202

Alkali facilities, machinery, and equipment

617,878

—

Onshore facilities, machinery, and equipment

757,874

427,658

Transportation equipment

17,995

17,543

Marine vessels

898,582

863,199

Land, buildings and improvements

103,774

55,712

Office equipment, furniture and fixtures

9,681

9,654

Construction in progress

58,069

440,225

Other

53,821

48,203

Fixed assets, at cost

5,522,292

4,763,396

Less: Accumulated depreciation

(681,900

)

(548,532

)

Net fixed assets

$

4,840,392

$

4,214,864

September 30, 2017

Mineral leaseholds

623,137

Less: Accumulated depletion

(381

)

Mineral leaseholds, net

$

622,756

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

Depreciation expense

$

57,117

$

46,909

$

157,438

$

135,428

Depletion Expense

381

—

381

—

ARO liability balance, December 31, 2016

$

213,726

Accretion expense

8,257

Change in estimate

7,875

Acquisitions

2,444

Divestitures

(7,649

)

Settlements

(21,252

)

Other

240

ARO liability balance, September 30, 2017

$

203,641

Remainder of

2017

$

2,741

2018

$

9,686

2019

$

8,782

2020

$

9,378

2021

$

10,014

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

Genesis’ share of operating earnings

$

16,986

$

16,444

$

46,631

$

47,281

Amortization of excess purchase price

(3,942

)

(3,956

)

(11,826

)

(11,919

)

Net equity in earnings

$

13,044

$

12,488

$

34,805

$

35,362

Distributions received

$

20,180

$

21,551

$

60,371

$

66,180

September 30, 2017

December 31, 2016

BALANCE SHEET DATA:

Assets

Current assets

$

18,638

$

17,111

Fixed assets, net

221,123

232,736

Other assets

1,282

861

Total assets

$

241,043

$

250,708

Liabilities and equity

Current liabilities

$

20,683

$

20,727

Other liabilities

231,469

219,644

Equity

(11,109

)

10,337

Total liabilities and equity

$

241,043

$

250,708

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

INCOME STATEMENT DATA:

Revenues

$

30,597

$

31,219

$

88,003

$

90,658

Operating income

$

22,334

$

23,107

$

63,159

$

68,166

Net income

$

20,739

$

21,921

$

58,754

$

64,670

September 30, 2017

December 31, 2016

GrossCarryingAmount

AccumulatedAmortization

CarryingValue

GrossCarryingAmount

AccumulatedAmortization

CarryingValue

Sodium minerals and sulfur services:

Customer relationships

$

94,654

$

91,809

$

2,845

$

94,654

$

89,756

$

4,898

Licensing agreements

38,678

35,947

2,731

38,678

34,204

4,474

Segment total

133,332

127,756

5,576

133,332

123,960

9,372

Onshore Facilities & Transportation:

Customer relationships

35,430

34,731

699

35,430

33,676

1,754

Intangibles associated with lease

13,260

4,815

8,445

13,260

4,459

8,801

Segment total

48,690

39,546

9,144

48,690

38,135

10,555

Marine contract intangibles

27,000

10,350

16,650

27,000

6,300

20,700

Offshore pipeline contract intangibles

158,101

18,029

140,072

158,101

11,788

146,313

Other

28,747

12,748

15,999

28,569

10,622

17,947

Total

$

395,870

$

208,429

$

187,441

$

395,692

$

190,805

$

204,887

Remainder of

2017

$

5,919

2018

$

21,506

2019

$

17,171

2020

$

16,237

2021

$

10,627

September 30, 2017

December 31, 2016

Principal

Unamortized Discount and Debt Issuance Costs (1)

Net Value

Principal

Unamortized Discount and Debt Issuance Costs (1)

Net Value

Senior secured credit facility

$

1,372,500

$

—

$

1,372,500

$

1,278,200

$

—

$

1,278,200

5.750% senior unsecured notes due February 2021

350,000

3,399

346,601

350,000

4,163

345,837

6.750% senior unsecured notes due August 2022

750,000

16,889

733,111

750,000

19,296

730,704

6.000% senior unsecured notes due May 2023

400,000

5,958

394,042

400,000

6,758

393,242

5.625% senior unsecured notes due June 2024

350,000

5,941

344,059

350,000

6,614

343,386

6.500% senior unsecured notes due October 2025

550,000

9,764

540,236

—

—

—

Total long-term debt

$

3,772,500

$

41,951

$

3,730,549

$

3,128,200

$

36,831

$

3,091,369

Distribution For

Date Paid

Per UnitAmount

TotalAmount

2016

1st Quarter

May 13, 2016

$

0.6725

$

73,961

2nd Quarter

August 12, 2016

$

0.6900

$

81,406

3rd Quarter

November 14, 2016

$

0.7000

$

82,585

4th Quarter

February 14, 2017

$

0.7100

$

83,765

2017

1st Quarter

May 15, 2017

$

0.7200

$

88,257

2nd Quarter

August 14, 2017

$

0.7225

$

88,563

3rd Quarter

November 14, 2017

(1)

$

0.5000

$

61,290

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

Net Income Attributable to Genesis Energy L.P.

$

6,312

32,101

$

67,135

$

91,131

Less: Accumulated distributions attributable to Series A Convertible Preferred Units

(5,469

)

—

(5,469

)

—

Net Income Available to Common Unitholders

$

843

$

32,101

$

61,666

$

91,131

Weighted Average Outstanding Units

122,579

115,718

121,198

111,906

Basic and Diluted Net Income per Common Unit

$

0.01

$

0.28

$

0.51

$

0.81

•

Offshore pipeline transportation – offshore pipeline transportation and processing of crude oil and natural gas in the Gulf of Mexico;

•

Sodium minerals and sulfur services – trona and trona-based exploring, mining, processing, producing, marketing and selling activities, as well as processing high sulfur (or “sour”) gas streams as part of refining operations to remove the sulfur and selling the related by-product, NaHS;

Marine transportation – marine transportation to provide waterborne transportation of petroleum products and crude oil throughout North America; and

Offshore Pipeline Transportation

Sodium Minerals & Sulfur Services

Marine Transportation

Onshore Facilities & Transportation

Total

Three Months Ended September 30, 2017

Segment margin (a)

$

78,228

$

30,031

$

12,649

$

25,606

$

146,514

Capital expenditures (b)

$

2,356

$

1,330,947

$

23,831

$

26,578

$

1,383,712

Revenues:

External customers

$

80,671

$

111,756

$

46,084

$

247,603

$

486,114

Intersegment (c)

—

(1,991

)

2,450

(459

)

—

Total revenues of reportable segments

$

80,671

$

109,765

$

48,534

$

247,144

$

486,114

Three Months Ended September 30, 2016

Segment margin (a)

$

86,557

$

20,526

$

16,697

$

17,560

$

141,340

Capital expenditures (b)

$

3,977

$

488

$

26,937

$

85,348

$

116,750

Revenues:

External customers

$

89,717

$

48,069

$

53,573

$

268,691

$

460,050

Intersegment (c)

—

(2,344

)

1,712

632

—

Total revenues of reportable segments

$

89,717

$

45,725

$

55,285

$

269,323

$

460,050

Nine Months Ended September 30, 2017

Segment Margin (a)

$

243,528

$

63,864

$

39,768

$

71,999

$

419,159

Capital expenditures (b)

$

8,498

$

1,331,892

$

44,496

$

115,663

$

1,500,549

Revenues:

External customers

$

244,653

$

204,237

$

143,599

$

715,839

$

1,308,328

Intersegment (c)

(1,216

)

(6,358

)

8,439

(865

)

—

Total revenues of reportable segments

$

243,437

$

197,879

$

152,038

$

714,974

$

1,308,328

Nine Months Ended September 30, 2016

Segment Margin (a)

$

249,457

$

61,586

$

53,695

$

63,969

$

428,707

Capital expenditures (b)

$

35,175

$

1,645

$

62,928

$

258,681

$

358,429

Revenues:

External customers

$

242,672

$

136,437

$

155,197

$

750,134

$

1,284,440

Intersegment (c)

2,165

(6,852

)

4,733

(46

)

—

Total revenues of reportable segments

$

244,837

$

129,585

$

159,930

$

750,088

$

1,284,440

September 30, 2017

December 31, 2016

Offshore pipeline transportation

$

2,507,540

$

2,575,335

Sodium minerals and sulfur services

1,826,815

395,043

Onshore facilities and transportation

1,939,355

1,875,403

Marine transportation

811,870

813,722

Other assets

52,054

43,089

Total consolidated assets

7,137,634

5,702,592

(b)

Capital expenditures include maintenance and growth capital expenditures, such as fixed asset additions (including enhancements to existing facilities and construction of growth projects) as well as acquisitions of businesses and contributions to equity investees related to same.

(c)

Intersegment sales were conducted under terms that we believe were no more or less favorable than then-existing market conditions.

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

Total Segment Margin

$

146,514

$

141,340

$

419,159

$

428,707

Corporate general and administrative expenses

(18,230

)

(10,420

)

(33,694

)

(32,269

)

Depreciation, depletion, amortization and accretion

(66,436

)

(57,103

)

(184,213

)

(168,491

)

Interest expense

(47,388

)

(34,735

)

(122,117

)

(104,657

)

Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income (1)

Level 1 fair values are based on observable inputs such as quoted prices in active markets for identical assets and liabilities;

(2)

Level 2 fair values are based on pricing inputs other than quoted prices in active markets for identical assets and liabilities and are either directly or indirectly observable as of the measurement date; and

(3)

Level 3 fair values are based on unobservable inputs in which little or no market data exists.

Fair Value at

Fair Value at

September 30, 2017

December 31, 2016

Recurring Fair Value Measures

Level 1

Level 2

Level 3

Level 1

Level 2

Level 3

Commodity derivatives:

Assets

$

546

$

—

$

—

$

3,764

$

—

$

—

Liabilities

$

(3,810

)

$

—

$

(11,278

)

$

—

$

—

Preferred Distribution Rate Reset Election

$

—

$

—

$

(36,726

)

$

—

$

—

$

—

Three Months Ended September 30,

Nine Months Ended September 30,

2017

2017

Beginning Balance

—

—

Initial valuation of Preferred Distribution Rate Reset Election

(34,450)

(34,450)

Net Loss for the period included in earnings

(2,276)

(2,276)

Ending Balance

(36,726)

(36,726)

GenesisEnergy, L.P.(Parent andCo-Issuer)

GenesisEnergy FinanceCorporation(Co-Issuer)

GuarantorSubsidiaries

Non-GuarantorSubsidiaries

Eliminations

GenesisEnergy, L.P.Consolidated

ASSETS

Current assets:

Cash and cash equivalents

$

6

$

—

$

8,960

$

728

$

—

$

9,694

Other current assets

75

—

569,457

11,836

(238

)

581,130

Total current assets

81

—

578,417

12,564

(238

)

590,824

Fixed assets, at cost

—

—

5,444,707

77,585

—

5,522,292

Less: Accumulated depreciation

—

—

(655,808

)

(26,092

)

—

(681,900

)

Net fixed assets

—

—

4,788,899

51,493

—

4,840,392

Mineral Leaseholds

—

—

622,756

—

—

622,756

Goodwill

—

—

325,046

—

—

325,046

Other assets, net

15,229

—

382,916

128,306

(151,026

)

375,425

Advances to affiliates

3,889,517

—

—

82,479

(3,971,996

)

—

Equity investees

—

—

383,191

—

—

383,191

Investments in subsidiaries

2,666,281

—

81,135

—

(2,747,416

)

—

Total assets

$

6,571,108

$

—

$

7,162,360

$

274,842

$

(6,870,676

)

$

7,137,634

LIABILITIES AND CAPITAL

Current liabilities

$

34,731

$

—

$

321,339

$

8,092

$

(151

)

$

364,011

Senior secured credit facility

1,372,500

—

—

—

—

1,372,500

Senior unsecured notes

2,358,049

—

—

—

—

2,358,049

Deferred tax liabilities

—

—

26,399

—

—

26,399

Advances from affiliates

—

—

3,971,992

—

(3,971,992

)

—

Other liabilities

36,727

—

183,552

187,057

(150,874

)

256,462

Total liabilities

3,802,007

—

4,503,282

195,149

(4,123,017

)

4,377,421

Mezzanine Capital:

Series A Convertible Preferred Units

691,708

—

—

—

—

691,708

Partners’ capital, common units

2,077,393

—

2,659,078

88,581

(2,747,659

)

2,077,393

Noncontrolling interests

—

—

—

(8,888

)

—

(8,888

)

Total liabilities, mezzanine capital and partners’ capital

$

6,571,108

$

—

$

7,162,360

$

274,842

$

(6,870,676

)

$

7,137,634

GenesisEnergy, L.P.(Parent andCo-Issuer)

GenesisEnergy FinanceCorporation(Co-Issuer)

GuarantorSubsidiaries

Non-GuarantorSubsidiaries

Eliminations

GenesisEnergy, L.P.Consolidated

ASSETS

Current assets:

Cash and cash equivalents

$

6

$

—

$

6,360

$

663

$

—

$

7,029

Other current assets

50

—

340,555

12,237

(302

)

352,540

Total current assets

56

—

346,915

12,900

(302

)

359,569

Fixed assets, at cost

—

—

4,685,811

77,585

—

4,763,396

Less: Accumulated depreciation

—

—

(524,315

)

(24,217

)

—

(548,532

)

Net fixed assets

—

—

4,161,496

53,368

—

4,214,864

Mineral Leaseholds

—

—

—

—

—

—

Goodwill

—

—

325,046

—

—

325,046

Other assets, net

10,696

—

390,214

133,980

(140,533

)

394,357

Advances to affiliates

2,650,930

—

—

73,295

(2,724,225

)

—

Equity investees

—

—

408,756

—

—

408,756

Investments in subsidiaries

2,594,882

—

80,735

—

(2,675,617

)

—

Total assets

$

5,256,564

$

—

$

5,713,162

$

273,543

$

(5,540,677

)

$

5,702,592

LIABILITIES AND CAPITAL

Current liabilities

$

34,864

$

—

$

211,591

$

14,505

$

(157

)

$

260,803

Senior secured credit facility

1,278,200

—

—

—

—

1,278,200

Senior unsecured notes

1,813,169

—

—

—

—

1,813,169

Deferred tax liabilities

—

—

25,889

—

—

25,889

Advances from affiliates

—

—

2,724,224

—

(2,724,224

)

—

Other liabilities

—

—

165,266

179,592

(140,377

)

204,481

Total liabilities

3,126,233

—

3,126,970

194,097

(2,864,758

)

3,582,542

Mezzanine Capital:

Series A Convertible Preferred Units

—

—

—

—

—

—

Partners’ capital, common units

2,130,331

—

2,586,192

89,727

(2,675,919

)

2,130,331

Noncontrolling interests

—

—

—

(10,281

)

—

(10,281

)

Total liabilities, mezzanine capital and partners’ capital

$

5,256,564

$

—

$

5,713,162

$

273,543

$

(5,540,677

)

$

5,702,592

GenesisEnergy, L.P.(Parent andCo-Issuer)

GenesisEnergy FinanceCorporation(Co-Issuer)

GuarantorSubsidiaries

Non-GuarantorSubsidiaries

Eliminations

GenesisEnergy, L.P.Consolidated

REVENUES:

Offshore pipeline transportation services

$

—

$

—

$

80,671

$

—

$

—

$

80,671

Sodium minerals and sulfur services

—

—

109,292

2,069

(1,596

)

109,765

Marine transportation

—

—

48,534

—

—

48,534

Onshore facilities and transportation

—

—

242,547

4,597

—

247,144

Total revenues

—

—

481,044

6,666

(1,596

)

486,114

COSTS AND EXPENSES:

Onshore facilities and transportation

—

—

225,716

313

—

226,029

Marine transportation costs

—

—

35,789

—

—

35,789

Sodium minerals and sulfur services operating costs

—

—

78,869

2,092

(1,596

)

79,365

Offshore pipeline transportation operating costs

—

—

17,928

762

—

18,690

General and administrative

—

—

19,409

—

—

19,409

Depreciation and amortization

—

—

63,107

625

—

63,732

Gain on sale of assets

—

—

—

—

—

—

Total costs and expenses

—

—

440,818

3,792

(1,596

)

443,014

OPERATING INCOME

—

—

40,226

2,874

—

43,100

Equity in earnings of subsidiaries

55,971

—

(388

)

—

(55,583

)

—

Equity in earnings of equity investees

—

—

13,044

—

—

13,044

Interest (expense) income, net

(47,383

)

—

3,450

(3,455

)

—

(47,388

)

Other expense

(2,276

)

—

—

—

—

(2,276

)

Income before income taxes

6,312

—

56,332

(581

)

(55,583

)

6,480

Income tax benefit (expense)

—

—

(322

)

2

—

(320

)

NET INCOME

6,312

—

56,010

(579

)

(55,583

)

6,160

Net loss attributable to noncontrolling interest

—

—

—

152

—

152

NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.

$

6,312

$

—

$

56,010

$

(427

)

$

(55,583

)

$

6,312

Less: Accumulated distributions attributable to Series A Convertible Preferred Units

(5,469

)

—

—

—

—

(5,469

)

NET INCOME AVAILABLE TO COMMON UNIT HOLDERS

$

843

$

—

$

56,010

$

(427

)

$

(55,583

)

$

843

GenesisEnergy, L.P.(Parent andCo-Issuer)

GenesisEnergy FinanceCorporation(Co-Issuer)

GuarantorSubsidiaries

Non-GuarantorSubsidiaries

Eliminations

GenesisEnergy, L.P.Consolidated

REVENUES:

Offshore pipeline transportation services

$

—

$

—

$

89,717

$

—

$

89,717

Sodium minerals and sulfur services

—

—

45,262

2,981

(2,518

)

45,725

Marine transportation

—

—

55,285

—

—

55,285

Onshore facilities and transportation

—

—

264,326

4,997

—

269,323

Total revenues

—

—

454,590

7,978

(2,518

)

460,050

COSTS AND EXPENSES:

Onshore facilities and transportation costs

—

—

252,450

255

—

252,705

Marine transportation costs

—

—

38,490

—

—

38,490

Sodium minerals and sulfur services operating costs

—

—

24,577

3,018

(2,518

)

25,077

Offshore pipeline transportation operating costs

—

—

22,533

589

—

23,122

General and administrative

—

—

11,212

—

—

11,212

Depreciation and amortization

—

—

53,640

625

—

54,265

Total costs and expenses

—

—

402,902

4,487

(2,518

)

404,871

OPERATING INCOME

—

—

51,688

3,491

—

55,179

Equity in earnings of subsidiaries

66,811

—

28

—

(66,839

)

—

Equity in earnings of equity investees

—

—

12,488

—

—

12,488

Interest (expense) income, net

(34,710

)

—

3,595

(3,620

)

—

(34,735

)

Other expense

—

—

—

—

—

—

Income before income taxes

32,101

—

67,799

(129

)

(66,839

)

32,932

Income tax expense

—

—

(949

)

—

—

(949

)

NET INCOME

32,101

—

66,850

(129

)

(66,839

)

31,983

Net loss attributable to noncontrolling interest

—

—

—

118

—

118

NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.

$

32,101

$

—

$

66,850

$

(11

)

$

(66,839

)

$

32,101

Less: Accumulated distributions attributable to Series A Convertible Preferred Units

—

—

—

—

—

—

NET INCOME AVAILABLE TO COMMON UNIT HOLDERS

$

32,101

$

—

$

66,850

$

(11

)

$

(66,839

)

$

32,101

GenesisEnergy, L.P.(Parent andCo-Issuer)

GenesisEnergy FinanceCorporation(Co-Issuer)

GuarantorSubsidiaries

Non-GuarantorSubsidiaries

Eliminations

GenesisEnergy, L.P.Consolidated

REVENUES:

Offshore pipeline transportation services

$

—

$

—

$

243,437

$

—

$

—

$

243,437

Sodium minerals and sulfur services

—

—

197,321

5,968

(5,410

)

197,879

Marine transportation

—

—

152,038

—

—

152,038

Onshore facilities and transportation

—

—

700,908

14,066

—

714,974

Total revenues

—

—

1,293,704

20,034

(5,410

)

1,308,328

COSTS AND EXPENSES:

Onshore facilities and transportation costs

—

—

661,842

853

—

662,695

Marine transportation costs

—

—

111,980

—

—

111,980

Sodium minerals and sulfur services operating costs

—

—

132,608

6,137

(5,410

)

133,335

Offshore pipeline transportation operating costs

—

—

52,396

2,286

—

54,682

General and administrative

—

—

38,723

—

—

38,723

Depreciation and amortization

—

—

174,578

1,875

—

176,453

Gain on sale of assets

—

—

(26,684

)

—

—

(26,684

)

Total costs and expenses

—

—

1,145,443

11,151

(5,410

)

1,151,184

OPERATING INCOME

—

—

148,261

8,883

—

157,144

Equity in earnings of subsidiaries

191,471

—

(1,033

)

—

(190,438

)

—

Equity in earnings of equity investees

—

—

34,805

—

—

34,805

Interest (expense) income, net

(122,060

)

—

10,436

(10,493

)

—

(122,117

)

Other expense

(2,276

)

—

—

—

—

(2,276

)

Income before income taxes

67,135

—

192,469

(1,610

)

(190,438

)

67,556

Income tax expense

—

—

(880

)

2

—

(878

)

NET INCOME

67,135

—

191,589

(1,608

)

(190,438

)

66,678

Net loss attributable to noncontrolling interest

—

—

—

457

—

457

NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.

$

67,135

$

—

$

191,589

$

(1,151

)

$

(190,438

)

$

67,135

Less: Accumulated distributions attributable to Series A Convertible Preferred Units

(5,469

)

—

—

—

—

$

(5,469

)

NET INCOME AVAILABLE TO COMMON UNIT HOLDERS

$

61,666

$

—

$

191,589

$

(1,151

)

$

(190,438

)

$

61,666

GenesisEnergy, L.P.(Parent andCo-Issuer)

GenesisEnergy FinanceCorporation(Co-Issuer)

GuarantorSubsidiaries

Non-GuarantorSubsidiaries

Eliminations

GenesisEnergy, L.P.Consolidated

REVENUES:

Offshore pipeline transportation services

$

—

$

—

$

244,837

$

—

$

244,837

Sodium minerals and sulfur services

—

—

129,671

5,499

(5,585

)

129,585

Marine transportation

—

—

159,930

—

—

159,930

Onshore facilities and transportation

—

—

734,560

15,528

—

750,088

Total revenues

—

—

1,268,998

21,027

(5,585

)

1,284,440

COSTS AND EXPENSES:

Onshore facilities and transportation costs

—

—

691,763

831

—

692,594

Marine transportation costs

—

—

105,942

—

—

105,942

Sodium minerals and sulfur services operating costs

—

—

67,190

6,036

(5,585

)

67,641

Offshore pipeline transportation operating costs

—

—

61,882

1,850

—

63,732

General and administrative

—

—

34,716

—

—

34,716

Depreciation and amortization

—

—

154,925

1,875

—

156,800

Total costs and expenses

—

—

1,116,418

10,592

(5,585

)

1,121,425

OPERATING INCOME

—

—

152,580

10,435

—

163,015

Equity in earnings of subsidiaries

195,674

—

(50

)

—

(195,624

)

—

Equity in earnings of equity investees

—

—

35,362

—

—

35,362

Interest (expense) income, net

(104,543

)

—

10,861

(10,975

)

—

(104,657

)

Other expense

—

—

—

—

—

—

Income before income taxes

91,131

—

198,753

(540

)

(195,624

)

93,720

Income tax (expense) benefit

—

—

(2,956

)

(3

)

—

(2,959

)

NET INCOME

91,131

—

195,797

(543

)

(195,624

)

90,761

Net loss attributable to noncontrolling interest

—

—

—

370

—

370

NET INCOME ATTRIBUTABLE TO GENESIS ENERGY, L.P.

$

91,131

$

—

$

195,797

$

(173

)

$

(195,624

)

$

91,131

Less: Accumulated distributions attributable to Series A Convertible Preferred Units

—

—

—

—

—

$

—

NET INCOME AVAILABLE TO COMMON UNIT HOLDERS

$

91,131

$

—

$

195,797

$

(173

)

$

(195,624

)

$

91,131

GenesisEnergy, L.P.(Parent andCo-Issuer)

GenesisEnergy FinanceCorporation(Co-Issuer)

GuarantorSubsidiaries

Non-GuarantorSubsidiaries

Eliminations

GenesisEnergy, L.P.Consolidated

Net cash provided by operating activities

$

142,721

$

—

$

333,709

$

(8,346

)

$

(250,294

)

$

217,790

CASH FLOWS FROM INVESTING ACTIVITIES:

Payments to acquire fixed and intangible assets

—

—

(182,653

)

—

—

(182,653

)

Cash distributions received from equity investees - return of investment

—

—

14,517

—

—

14,517

Investments in equity investees

(140,513

)

—

—

—

140,513

—

Acquisitions

—

—

(1,325,759

)

—

—

(1,325,759

)

Intercompany transfers

(1,238,585

)

—

—

—

1,238,585

—

Repayments on loan to non-guarantor subsidiary

—

—

(159

)

—

159

—

Contributions in aid of construction costs

—

—

124

—

—

124

Proceeds from asset sales

—

—

39,204

—

—

39,204

Other, net

—

—

—

—

—

—

Net cash used in investing activities

(1,379,098

)

—

(1,454,726

)

—

1,379,257

(1,454,567

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings on senior secured credit facility

1,247,700

—

—

—

—

1,247,700

Repayments on senior secured credit facility

(1,153,400

)

—

—

—

—

(1,153,400

)

Proceeds from issuance of senior unsecured notes

550,000

—

—

—

—

550,000

Proceeds from issuance of Series A convertible preferred units, net

729,958

—

—

—

—

729,958

Debt issuance costs

(17,808

)

—

—

—

—

(17,808

)

Intercompany transfers

—

—

1,242,475

(3,890

)

(1,238,585

)

—

Issuance of common units for cash, net

140,513

—

140,513

—

(140,513

)

140,513

Distributions to common unitholders

(260,586

)

—

(260,586

)

—

260,586

(260,586

)

Contributions from noncontrolling interest

—

—

—

1,850

—

1,850

Other, net

—

—

1,215

10,451

(10,451

)

1,215

Net cash used in financing activities

1,236,377

—

1,123,617

8,411

(1,128,963

)

1,239,442

Net increase in cash and cash equivalents

—

—

2,600

65

—

2,665

Cash and cash equivalents at beginning of period

6

—

6,360

663

—

7,029

Cash and cash equivalents at end of period

$

6

$

—

$

8,960

$

728

$

—

$

9,694

GenesisEnergy, L.P.(Parent andCo-Issuer)

GenesisEnergy FinanceCorporation(Co-Issuer)

GuarantorSubsidiaries

Non-GuarantorSubsidiaries

Eliminations

GenesisEnergy, L.P.Consolidated

Net cash provided by operating activities

$

122,884

$

—

$

310,723

$

6,781

$

(211,991

)

$

228,397

CASH FLOWS FROM INVESTING ACTIVITIES:

Payments to acquire fixed and intangible assets

—

—

(363,218

)

—

—

(363,218

)

Cash distributions received from equity investees - return of investment

—

—

16,652

—

—

16,652

Investments in equity investees

(298,051

)

—

—

—

298,051

—

Acquisitions

—

—

(25,394

)

—

—

(25,394

)

Intercompany transfers

54,148

—

—

—

(54,148

)

—

Repayments on loan to non-guarantor subsidiary

—

—

4,526

—

(4,526

)

—

Contributions in aid of construction costs

—

—

12,208

—

—

12,208

Proceeds from asset sales

—

—

3,303

—

—

3,303

Other, net

—

—

185

—

—

185

Net cash used in investing activities

(243,903

)

—

(351,738

)

—

239,377

(356,264

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings on senior secured credit facility

883,600

—

—

—

—

883,600

Repayments on senior secured credit facility

(831,600

)

—

—

—

—

(831,600

)

Debt issuance costs

(1,578

)

—

—

—

—

(1,578

)

Intercompany transfers

—

—

(35,144

)

(19,004

)

54,148

—

Issuance of common units for cash, net

298,051

—

298,051

—

(298,051

)

298,051

Distributions to common unitholders

(227,454

)

—

(227,454

)

—

227,454

(227,454

)

Other, net

—

—

(600

)

10,937

(10,937

)

(600

)

Net cash provided by financing activities

121,019

—

34,853

(8,067

)

(27,386

)

120,419

Net decrease in cash and cash equivalents

—

—

(6,162

)

(1,286

)

—

(7,448

)

Cash and cash equivalents at beginning of period

6

—

8,288

2,601

—

10,895

Cash and cash equivalents at end of period

$

6

$

—

$

2,126

$

1,315

$

—

$

3,447

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

(in thousands)

(in thousands)

Offshore pipeline transportation

78,228

86,557

$

243,528

$

249,457

Sodium minerals and sulfur services

30,031

20,526

63,864

61,586

Onshore facilities and transportation

25,606

17,560

71,999

63,969

Marine transportation

12,649

16,697

39,768

53,695

Total Segment Margin

$

146,514

$

141,340

$

419,159

$

428,707

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

Total Segment Margin

$

146,514

$

141,340

$

419,159

$

428,707

Corporate general and administrative expenses

(18,230

)

(10,420

)

(33,694

)

(32,269

)

Depreciation, depletion, amortization and accretion

(66,436

)

(57,103

)

(184,213

)

(168,491

)

Interest expense

(47,388

)

(34,735

)

(122,117

)

(104,657

)

Adjustment to exclude distributable cash generated by equity investees not included in income and include equity in investees net income (1)

Volumes are the product of our effective ownership interest through the year, including changes in ownership interest, multiplied by the relevant throughput over the given year.

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2017

2016

2017

2016

Volumes sold:

NaHS volumes (Dry short tons "DST")

30,381

34,299

95,575

96,116

Soda Ash volumes (short tons sold) (2)

336,000

—

336,000

—

NaOH (caustic soda) volumes (dry short tons sold) (3)

21,746

19,653

55,962

59,802

Total

388,127

53,952

487,537

155,918

Revenues (in thousands):

NaHS revenues

$

33,702

$

37,054

$

105,209

$

103,680

NaOH (caustic soda) revenues

11,145

9,872

29,511

28,816

Revenues associated with Alkali Business

65,554

—

65,554

—

Other revenues

1,355

1,143

3,963

3,941

Total external segment revenues

$

111,756

$

48,069

$

204,237

$

136,437

Segment Margin (in thousands)

$

30,031

$

20,526

$

63,864

$

61,586

Average index price for NaOH per DST (1)

$

647

$

496

$

613

$

453

•

purchasing products from refiners, transporting those products to one of our terminals and blending those products to a quality that meets the requirements of our customers and selling those products (primarily fuel oil, asphalt and other heavy refined products) to wholesale markets.

risks inherent in marine transportation and vessel operation, including accidents and discharge of pollutants;

•

our inability to borrow or otherwise access funds needed for operations, expansions or capital expenditures as a result of our credit agreement and the indentures governing our notes, which contain various affirmative and negative covenants;

•

cash from operations that we generate could decrease or fail to meet expectations, either of which could reduce our ability to pay quarterly cash distributions at the current level or continue to increase quarterly cash distributions in the future;

the treatment of us as a corporation for federal income tax purposes or if we become subject to entity-level taxation for state tax purposes; and

•

the potential that our internal controls may not be adequate, weaknesses may be discovered or remediation of any identified weaknesses may not be successful and the impact these could have on our unit price.